AU Small Finance Bank delivered a strong quarter.

Profit After Tax (PAT) surged 37% YoY to ₹796 Cr, driven by a 32% rise in Net Interest Income (NII) and a 41% jump in core operating profit.

Net Interest Margin (NIM) expanded 47 bps YoY to 5.9%. The bank's loan portfolio grew 23% YoY to ₹1.44 Lakh Cr, with deposits up 24% YoY to ₹1.58 Lakh Cr.

Secured businesses led growth at 25% YoY.

Asset quality improved, with slippages down 22%; Gross NPA is at 2.10% and Net NPA at 0.76%. Cost of funds declined to 6.48%. The bank is actively implementing an AI-led tech strategy, including an AI-powered gold loan origination platform and a unified lead platform to boost efficiency.

Product launches included zero forex margin for cross-border banking and four new credit cards.

Leadership was strengthened and the bank added 130 new touchpoints.

Management sees significant growth headroom, driven by a retail-focused, scalable business model, and "in-principle" approval for Universal Bank transition.

Expect continued operating leverage and improving cost-to-assets.